|1||Generated $1.5 million in revenue in the NY market, easily scalable to major metro cities.|
|2||20,000+ registered users, 12,000+ groomings completed. Extensive network with 50+ expert groomers.|
|3||Underserved pet grooming market of over $6 billion/yr and 7% annual growth.|
|4||Increased demand as an essential solution post-COVID-19 with limited contact grooming.|
|5||Partnerships with numerous building management companies and veterinarians that drive awareness|
|6||Highly reviewed by users on Yelp & Google Reviews 4.5+|
|7||Built and own the powerful full-stack platform that enables monitoring and maintaining of user/groomer relationship|
|8||$2.5 million raised in investments & funding|
I've chosen to invest in Groomit for several reasons.
First, the business model is sustainable, scalable, and an outright better service offering to pets and pet parents.
Second, it is a positive example of what a company operating in the gig economy should be. Groomers are compensated fairly at above market rates and share in the majority of the revenue earned from the Grooming.
Third, the market demand for such a service is massive and pet ownership is growing. Lastly, and perhaps most important, it is run by a CEO that knows how to get things done and has a proven track record building successful companies.
This is evidenced by the company continuing to scale despite the pandemic. The CEO derisks the investment and execution risk. In today's world, it is my humble opinion that companies who offer a superior service, take care of their people and clients, and have the runway to scale are bound for success.
Grooming is not just important in ensuring you have a happy pet, but a healthy one too.
But pet grooming is an ongoing effort and sometimes quite the time sink! Many would like to groom their pet more, but with how busy family and/or work life can be, it can be hard to simply find the time. This is where we at Groomit step in!
We excel in ensuring pets receives all the grooming they need to a professional standard. Our groomers have a passion for pets like no other; and to top it all off, they perform their work in pet owners home!
So if a pet could use a touch-up whether it be dog grooming or cat grooming we can handle it.
As pet owners and lovers we realized that:
- Dogs and cats' parents need to wait for weeks to get an appointment with a good groomer.
- Pets get anxious about traveling to unfamiliar environments (mobile grooming and salons).
- There are serious pet health concerns in cages at salons & multiple handlers.
- Difficult finding good & reliable groomers consistently.
In-home pet grooming services, such as our own, come with many benefits for your lovely animals. We offer a grooming service that:
- A person can schedule an appointment for the same day through our mobile app.
- Pet owners can book at their desired time, anytime.
- No traveling required - the groomer comes to your home or apartment.
- A personalized and safe experience for the pet in a familiar environment.
- Pets receive the best care with natural & organic products.
- Have an extensive network of certified & insured groomers.
With our services at Groomit, owners get even more benefits. they can pick a favorite groomer, meaning that you can continue to get the same groomer for subsequent appointments.
It’s also incredibly easy to set up appointments! Through our app or the website, they can have a confirmed appointment within minutes.
Additionally, all of our groomers follow the safety procedures recommended by the CDC and the WHO, so you can rest easy knowing that there is a minimal risk of Coronavirus.
Pick it Choose one of our three grooming packages for your dog or cat. Personalize their experience by selecting some of our organic shampoos and optional add-ons.
Book it Schedule an in-home grooming appointment for when it is most convenient for you. We even offer same-day appointments.
Groom it Now you can simply sit back and relax!
With our team in Argentina, we are constantly looking to be on top of the technology stack helping pet parents to have the best experience while booking a grooming appointment with their pets.
Groomit has financial statements ending December 31 2019. Our cash in hand is $15,000, as of August 2020. Over the three months prior, revenues averaged $72,000/month, cost of goods sold has averaged $50,000/month, and operational expenses have averaged $35,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
An on-demand platform that connects pet owners with pet stylists for in-home grooming services
In five years we hope to be in 30 cities and performing 1 Mil groomings per year. These projections cannot be guaranteed.
Groomit Inc. was incorporated in the State of Delaware in January 2020. Groomit for Pets LLC is an operating entity. Groomit Inc is the 100% shareholder and holding entity.
Since then, we have:
Historical Results of Operations
Our company was re-incorporated in January 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $1,696,653 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Groomit Inc. cash in hand is $15,000, as of August 2020. Over the last three months, revenues have averaged $70,000/month, cost of goods sold has averaged $50,000/month, and operational expenses have averaged $35,000/month, for an average burn rate of $15,000 per month. Our intent is to be profitable in 2 months.
Post lockdown we have seen a great improvement in profit/booking, we've see more organic demand from users paying full price (no promotions) that helped increase margin from avg $22 net to now $45 net within the last 2 months.
We expect the monthly revenue to be flat in summer months until September, averaging between $80,000 to $100000 monthly. We expect averaging 50% growth in Q4 / 2020, average monthly revenue to be $120,000 to $150,000. We expect our margin to hold steady at about 35% of gross revenue.
Expenses should remain flat in summer months and increase 10% to around $40,000 monthly in the last quarter
We've been funded by founders and friends & family, we expect founders and Friends and Family to add more capital if needed. Also, we are discussing with VC's and family offices.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Someone else copies the same business model and offers better incentives to pet groomers and less pricing to users
We may not able to manage supply (recruiting of pet groomers) and demand (not able to get awareness and users on platform)
Change & updates of state regulations like independent contractors/employee and new implementation licensing of groomers could impact our business and affect our unit economics.
The existing markets revenue may remain flat or growth could slow down, and we may not able to open additional market due to lack of funds.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The company has significant liabilities of varying maturities which will eventually need to be repaid. Future investor funds or operating capital could be used to repay those debts.
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